Sydney Stock Exchange uses blockchain to fight ASX monopoly

Rage Commentary : The Sydney Stock Exchange (SSX) wants to use blockchain technology to achieve clearing and settlement of transactions. This move is to avoid the high fees charged by the Australian Stock Exchange (ASX) and fight against the monopoly of the Australian Stock Exchange, because the four major clearing and settlement equipment are currently owned by ASX. Loretta Joseph, head of market development at SSX, believes that SSX can reduce risks and make Australia a leading country in the use of blockchain technology, but regulatory reforms are needed before the exchange implements such a system.

Translation: Nicole

The Sydney Stock Exchange (SSX) wants to use blockchain to clear and settle trades.

At the SINET 61 conference on September 15, SSX head of market development Loretta Joseph said the goal of the project – announced in May and due to be completed in 2018 – was to avoid high fees charged by the Australian Stock Exchange (ASX) and to modernise technology.

According to ZDNet, the Asia Pacific Stock Exchange (SSX), founded in 1997, wants to fight against the monopoly of ASX.

Loretta Joseph

Joseph told the news media:

“This is a great opportunity for SSX to develop its own clearing stage registration capabilities, which means I can control my own destiny rather than relying on competitors.”

By settling trades in real time, Joseph said she believed SSX could reduce risk while also making Australia a leading country in the use of blockchain technology.

Joseph, who is also chair of the Australian Digital Currency Trade Association (ADCCA), said regulatory reforms were needed before exchanges could implement such a system. The BIS said the four major clearing and settlement facilities are currently owned by the ASX.

Joseph said:

“Our expectation is to develop policy recommendations that governments can adopt to promote blockchain innovation.”

To implement the initiative, SSX will work with Bit Trade Labs, an Australia-based blockchain “production studio” whose members include ADCCA and blockchain voting startup Flux.